medium-term management plan re-orientation plan
TRANSCRIPT
October 15, 2021
Medium-Term Management Plan
“Re-orientation Plan”Phase1:Preparation for the Leap Forward
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Slide 1Table of Contents
Ⅰ.The Previous Med-term Plan in
Retrospect:
Motivations for the Next Med-Term Plan
1.Progress Across Planned Values2.Status of Prioritized Measures
Ⅱ.Baroque Japan’s Vision
1.Our Guiding Principles
(1)Baroque’s Corporate Philosophy
(2)Baroque’s Strengths
2.Baroque Japan’s 10-Year Vision
3.Positioning of the Next Med-Term Plan
Ⅲ.Basic Policies of the Next Medium-Term Management Plan:Strategies for Actualizing Our Vision
1.Market Changes and Challenges Facing Our Company
2.List of Key Strategies for the Next Medium-Term Management Plan
3.Key Strategies of the Next Medium-Term Management Plan3-1.Narrowing Down and Strengthening
Domestic Apparel Business3-2.Steady Growth of China Apparel
Business3-3.New Business Creation3-4.Sustainability Initiatives3-5.Development of Infrastructure to
Support Business
Ⅳ.KGIs for the Next Medium-Term Management Plan
1.Management Indicators and Goals2. Dividend Policy
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Slide 2
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Slide 3
68,770 69,49367,952
71,034 65,880
52,547
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0
20,000
40,000
60,000
80,000
100,000
2016/1月期 2017/1月期 2018/1月期 2019/2月期 2020/2月期 2021/2月期
売上高 実績 営業利益 実績
I. The Previous Mid-term Plan in Retrospect: Motivations for the Current Mid-Term Plan
1.Progress Across Planned Values
■Under the current medium-term management plan, two fiscal periods have passed. Due to the influence of the
Coronavirus epidemic, we have deviated from our planned target values resulting in a need to reconstruct and replan.
FY 2020/02 FY 2021/02
Unit:1 Mil.JPY Actual
Against Sales Target
ActualAgainst Sales Target
Total Sales 65,880 100.0% 52,547 100.0%
Operating Income
4,604 7.0% 1,550 2.6%
Prev. Mid-Term
Plan’s Period
Tota
l Sale
s Unit:
1
mil. JP
Y
OP U
nit
:1
mil. JP
Y
Actual Total Sales
FY2016/01 FY2017/01 FY2018/01 FY2019/02 FY2020/02 FY2021/02
Actual Operating Income
ROE 7.2% 16.0% 14.5% 1.9%
8.7%
7.7%
3.8%
6.7% 7.0%
2.6%
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Slide 4
Prioritized Measures Current StatusAchievement Lvl.
1.Aggressive Global Expansion●Although we are pursuing aggressive expansion of wholesaling in various
areas around the world to achieve the first stage of our vision, the Covid-19 pandemic has slowed down the speed of progress
2.Sustainable Expansion of Chinese Business Operations
●Steady growth, with 46 stores added in 2 years – an average annual increase of 23 stores
3.Increase Amount of Foreign Staff within Head Office Personnel to 10%
●Proactively conducting local information sessions, interviews, and recruitment overseas; currently 5% (Due to the Covid-19 pandemic these were not implemented in FY2020)
4.Accumulation, Analysis, and Utilization of Data through New Retail Strategies
●We are currently implementing several measures such as store/EC inventory standardization, new methods of processing in-store orders, digital marketing, etc.
5.New Business/New Business DevOps through Open Innovation
●Currently examining new businesses and new business structures and considering potential commercialization opportunities
I. The Previous Mid-term Plan in Retrospect: Motivations for the Current Mid-Term Plan
2.Status of Prioritized Measures (1 of 2)
■In terms of our priority measures, we are in the 2nd year of adaptation and progress is in the middle of the road.
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Slide 5
Prioritized Measures Current StatusAchievement Lvl.
6.Creating Attractive Products at Full Price
●In response to damages incurred during the Covid-19 pandemic we are further promoting full-price sales by controlling production and inventory
7.Brand Selection and Concentration●Abolition of unprofitable brands according to newly established revision and
abolition standards and enabled establishment of new brands at any time
8.Promotion of SCM Reform●In production, the ratio of direct trade has increased to 30%, and further
inventory control by status and case has been achieved during inspection in logistics.
9.Store Structure Reform and Streamlining of Head Office Operations
●Promotion of multiple measures such as reduction of inventory work through RFID tags in stores and a remote work system at the main office, etc.
I. The Previous Mid-term Plan in Retrospect: Motivations for the Current Mid-Term Plan
2.Status of Prioritized Measures (2 of 2)
In light of the ongoing contraction of domestic apparel business and the current situation of the
Covid-19 pandemic, the previous medium-term plan will be completed in 2 years and a new
3-year, medium-term management plan formulated.
This Medium-Term Management Plan does not limit itself to focusing only on sales, but
positions itself as a period of ’Improvement of Profit Margin’ and ‘Conversion from
Apparel Company to a Value-Proposing Company’.
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Slide 6
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Slide 7
Ⅱ.Baroque Japan’s Vision
1.Our Guiding Principles(1)Baroque’s Corporate Philosophy
Corporate
Philosophy
Corporate
Slogan
OUR MISSION
OUR VALUES
The BAROQUE WAY :
Enjoy life more.
~ In such providing a richer life for our customers.
Innovation. Changing the Future of Retail.
~ Through innovation, introduce the potential of a new society.
:Individuality. Sensitivity.
: Empathizing and Resonating with Customers
:Taking Joy in Personal Development and That
of Others. Taking Joy in Accomplishing as a
Team.
Inclusion
Customer-Oriented
Collaboration
■Our corporate philosophy, which is the premise of our vision of our future, is as follows.
~ Acting from Baroque’s culture of Challenging the status quo on the world stage
The way we realize our Corporate
Philosophy in the workplace
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Slide 8
Ⅱ.Baroque Japan’s Vision
1.Our Guiding Principles(2)Baroque’s Strengths
➊ Ability to Create New Value
Bearing the MOUSSY brand name, achieved a scale of 50 Billion JPY across the brand group
➋ Chinese Expansion Ability
Whereas other companies struggle in the Chinese market, we have over 300 stores.
300
Stores!
Not only Japan, but the world~
*:Average Market Capitalization
relative to wider apparel industry
Our ability to expand within the
industry*BJL
300
Stores
Less than 10 stores/
Not
Opened/Withdrawn
30~50 stores
Over 100 stores
Most, especially within
apparel, have withdrawn
after market entry
Num. of Retail
Stores in China
Num. of Stores Directly Managed in China
Uniqlo 775 stores
Muji 294 stores
Customers
➌ Ability to Reach Customers
Ability to connect and be supported by customers = Strong Sales Potential
Industry-Leading Per Capita
Sales of 38 million JPY
Average
22 mil JPY
BJL
38 mil JPY
Customer Service Ability Even
When Customers Do Not Come
In-store
・STAFF START
・Video Streaming
├Instalive
└YouTube,etc.
Guide to EC
Channels
Introduce
to Stores
Easily accessible, regardless of which you choose
Such is the realization of New Retail
For 20 years, MOUSSY has
consistently added new value,
consistently producing and
growing across the world.
Of the 50 billion JPY, over 40%
of those earnings were earned in
overseas markets
The strengths of our company, which act as the second premise of our future goals, is as follows.
*As of May, 2021
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Slide 9
Ⅱ.Baroque Japan’s Vision
2.Our Company’s 10-Year Vision
Creating and transmitting products and ideas according to Baroque-only sensitivities
Customer-Oriented
CollaborationOpen
Innovation
Inclusion
Move beyond the
framework of
apparel to new
areas
Sustainability
Value our connection
with customers
Become an organization that grows with its employees, and accomplishes goals as a team
Become a company that
embodies sustainability
We aim to become a Value-Proposing Company that transmits “+α values unique to Baroque”across various content fields
■To develop in leveraging our strengths according to our Corporate Philosophy, it is not essential that Baroque remains
solely an Apparel Company.
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Slide 10
Ⅱ.Baroque Japan’s Vision
3.Positioning of the Next Medium-Term Management Plan
■This Medium-Term Management Plan will be the 1st Phase towards achieving our 2030 Vision
Next Med-Term Goal
Present
Global New Retail1st Stage
2019~2024Global Challenge2018~2021
Next Med -Term
Next Med-Term
Future Med-Term
Re-orientation PlanPhase 1:Preparing for the Next Leap. Strengthening Our Foundations and Preparing for Expansion
Re-orientation PlanPhase2:Leap
~Expansion to the world and new areas
Re-orientation PlanPhase3: Realization
~Realization of our goal of becoming a Value-Proposing Company
To achieve the 2030 Vision we
are aiming for, we have placed
this 1st phase (3 Years)
accordingly
…over 3 years, after establishing a new normal post-corona, strive to set this period as an opportunity to get back on a growth track
2030 Vision
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Slide 11
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Slide 12
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
1.Market Changes and Challenges Facing Our Company
Pre
-Pan
dem
ic
1)Shrinking and Polarization of the Domestic Apparel Market
4)Decreased Flow of Traffic in Urban Areas
2)Changes in Ways of Thinking Towards Apparel Consumption Practices
…thinking “I’ll only buy what I really want/need”
3)Increasing Demand for Sustainability
5)Accelerated Shift to Online Purchasing
6)Increased Difficulty of Inventory Control
…as resulting from a declining birthrate, aging population, and shrinking mid-price market
…with sentiment pushing away from mass production and mass production
…resulting in a decrease in customer traffic to stores In metropolitan areas
…accelerated adoption on top of previous conventional growth, characterized by EC purchases w/o visiting a store
…resulting from increased uncertainty regarding store traffic and consumer behavior
Ap
pare
nt P
ost-P
an
dem
ic
② Selection/Concentration of Stores and Brands
③ Improving Brand Competitiveness
④ Realization of Manufacturing without Overproduction
⑥ Realization/Promotion of New Retail
① Growth of Chinese Business
⑦ Creation of New Business
⑤ Full-scale Sustainability Initiatives
(Corresponds to 1,4 on the left)
(Corresponds to 2,7 on the left)
(Corresponds to 2,3,6,7 on the left)
(Corresponds to 3 on the left)
(Corresponds to 4,5 on the left)
(Corresponds to 1 on the left)
(Corresponds to 1,3 on the left)
Changes Encountered in the Market Challenges facing Baroque
7)Need to Clarify the Core Values of Company Brands
…looking at point 2, this is particularly clear. Only brandsproviding top value, along with developing strong technological and manufacturing capabilities will remain (with powerful brands becoming stronger).
Active Promotionof the Next
Driver of Growth
Refinement of
Basic Business
Practices
Realization of
2030 Vision
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Slide 13
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
2.List of Key Strategies for the Next Medium-Term Management Plan (1/2)
2-3.
New Business
2-2.
Chinese Apparel
Business
2-1.
Domestic
Apparel
Business:Steady Growth
(As preparation
for expansion)
① Maintaining Continuous Growth
② Strengthening Business Management :Creating New Business(As
Preparation for expansion)
① Development of a Baroque New Business Policy Framework (i.e. materialization of new business according to the above framework’s requirements)
:Narrowing down and
Strengthening Base
① Selection and Concentration
② Improving Profitability- New Retail- Manufacturing Curtailment
③ Improving Brand Competitiveness
2-4.Sustainability Initiatives
2-5.Development of Infrastructure to Support Business
Business Front
General Front
… Setting and Promotion of
Sustainability Goals
and Initiatives
… Core Systems/Organization,etc.
In-House Maintenance
■In light of the challenges facing Baroque, the present management plan is designed to strengthen our footing by addressing the following three business fields and two general fields
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Slide 14
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
2.List of Key Strategies for the Next Medium-Term Management Plan (2/2)
Narrowing Down
Constitutional Reform
① Selection and Concentration
② Improvement of Profit Margin
③ Improvement of Brand
Competitiveness
Steady Growth ① Maintaining Continuous Growth
② Strengthening Business Management System
New Business Creation① Development of Baroque New
Business Policy
Sustainability Initiatives
① Clarification of Sustainability Goals
Development of
Infrastructure to
Support Business
① Scrap-and-Build Store Dev. Policy Promotion
② Clarification of Addressable Issues
② Aggressive Investment to Prepare for Growth
③ Supply Chain Update
④ Strengthening Training and Placement Through Personnel System Reform
1)Rebranding/Brand Abolition
2)Scrap-and-Build Stores
1)Manufacturing Curtailment
2)New Business Realization
1)Increase Brand Value and Recognition
2)Initiatives to Strengthen Brand and sales Channels
3)Sustainability Initiatives
1)Maintain Net Store Growth Speed
1)Improving Independence/Competitiveness of Chinese Local Subsidiaries
2)Strengthen Group Management
2-1.
Domestic
Apparel
Business
2-2.Chinese Apparel Business
2-3.New Business
2-4.
Sustainability
2-5.
Business
Infrastructure
☞ See 1
☞ See 2
☞ See 3
☞ See 4
☞ See 4
☞ See 3
☞ See 2
☞ See 1
… Cross-Divisional Initiatives +Initiatives within each Business Unit
… Collaboration and Promotion Between Store Development and Business Divisions
…including New Retail-related investments
… Cooperation and Promotion between Production and Business Divisions
and
Key Strategies Key Policies
■The following is a list of key strategies and measures across the 5 areas below(detailed explanation continues next page.
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Slide 15
■To maintain its position in a shrinking market, our company has set Narrowing Down and Strengthening as key strategies for the domestic market
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, Point3-1. Narrowing Down and Strengthening Domestic Apparel Business(1/4)
①Selection and
Concentration
②Improvement of
Profit Margin
③Improvement of Brand
Competitiveness
… rebranding to match needs while
adapting a scrap-and-build store policy
… concentrate resources on areas that need
to be strengthened
Narrowing Down
Manufacturing
Curtailment
Realization
Of New Retail
Practices
Brand Value And Recognition
Strengthen Initiatives by Brand,
by Sales Channel
Sustainability
Initiatives
Reduction of Product Number, QR System Strengthening. Etc.
OMO Improvement Rebranding, Opening of Flagship Stores, etc.
Strengthening of EC Sales Channels,Strengthening of Planning Capabilities, etc.
Use of Recycled Materials, Ethical as a Style, etc.
Key S
trate
gie
sKey P
olic
ies
Key Strategy 2-5Dev. Of Infrastructure to Support Business
Overproduction Curtailment = Sustainable
…renewal of core systems around new retail principles as a platform, and strengthening of digital market organization/initiatives
Post-Corona
State of Business
Strengthening
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Slide 16
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, Point3-1. Narrowing Down and Strengthening Domestic Apparel Business(2/4)
Improved Customer Convenience
Omni channelization
New Retail Realization ...Baroque’s New Retail= Improve Business Efficiency and Customer Convenience
MD・DB Business Support
Customer Trend Analysis, etc.
Implementation of Data-Driven
Marketing
+
Store and EC Data
Integration
Real-time
Data
Business Efficiency
Customers
Personalized
Recommendation
Pop-ups
Recommendation
E-mails
OMO Service
Multi-channel
Service Unification
RFID Tags
For All Brands
Improvement of Logistics Efficiency
Store Efficiency
StoreOffline
ECOnline
OMO Improvement
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Slide 17
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, Point3-1. Narrowing Down and Strengthening Domestic Apparel Business(3/4)
To increase brand value and recognition by transmitting Baroque’s new “Culture” and by proposing a
prosperous life.
Customer
Empathize Develop trust in Brands
Position of “a friend or a
person to admire”
Position of “Staff”
Sharing Lifestyle
• Diet• Creating
Atmosphere• Self-improvement
etc.
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Slide 18
Increase brand value by strengthening products using multifunctional materials.
ProductsShape Retention
Antibacterial
Support to increase brand value
Femtech USA COTTON
UV-Cut Material
Quick DryCool Touch Fabric
Dirt Reduction
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, Point3-1. Narrowing Down and Strengthening Domestic Apparel Business(4/4)
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Slide 19
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, 3-2 Stead Growth of ChinaApparel Business (1/3)
■In terms of the Key Strategies for our China Apparel Business, we aim to maintain continuous growth while simultaneously
strengthening and restructuring our business operation structure.
② Strengthening Business Management System
A.Improving the Independence
and Competitiveness of Chinese
Local Subsidiaries
1)Redefine brand position
2)Improve China Business Profit Margin
3) Strengthen Product Planning Capabilities
B.Strengthening of Group Management
1)Building a Group Management System
~Sharing of Strategies/Progress Management
~Periodic Monitoring of Status and
Cooperation
Cn. Unique
Strength
Group
Management
Until now, business has been successful leaving to local managementBuilding a new balance of ‘center-outwards’ and ‘center-inwards’ perspectives
① Maintaining Continuous Growth
Chinese Economic Growth has been in the 6% range in recent years Although former momentum of over 10% has slowed, growth is expected to remain strong.
6.7% 6.8% 6.6%6.1%
2.3%
0.0%
2.0%
4.0%
6.0%
8.0%
2016年 2017年 2018年 2019年 2020年 2021年
Average annual growth rate of 17% in terms of number of stores, with continued growth of +20 stores/yr for existing brands over the next 3 years
Ch
ina G
DP
Gro
wth
Rate
・ Only pos. growth
among G20
・ 6.5% YoY Growth in
Oct./Dec. 2020
MOUSSY
SLY
MOUSSY&SLY
136
187
227
249
285299
0
50
100
150
200
250
300
2015年12月 2016年12月 2017年12月 2018年12月 2019年12月 2020年12月
MOUSSY
SLY
MOUSSY&SLY
Nu
m. o
f JV
Sh
op
s in
Ch
ina
~ Establishing Chinese Operations’ unique strength while balancing group management
2015/12 2016/12 2017/12 2018/12 2019/12 2020/12
2016 2017 2018 2019 2020 2021
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Slide 20
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, 3-2 Stead Growth of ChinaApparel Business (2/3)
■The following four items are initiatives towards ‘(2) Strengthening Business Management System’ from the previous page.
3)Strengthen Product
Planning Capabilities
1)Building a Group
Management System
1)Redefining Brand
Position
Establish a brand position in China.
Without being bound by the trends of the mass market,
propose edgy and unique fashions.
To now, we have been successful in increasing the degree of operational freedom locally and building a system that can be strongly promoted by Chinese counterparts alone. As such while maintaining the ‘center-outwards’ ability of group management…
Restructure the Group Management System to Link Strategy to
Execution
In order to establish a better brand position in the Chinese market, in China we will further strengthen “soft” operations such as product planning and design specifically for the Chinese market.
Strengthen planning functions of our Chinese Joint Venture and establish a collaborative system with Japanese counterparts
2)Improving the China
Business Profit Margin
A.Improving Independence and Competitiveness of Chinese Local Subsidiaries
B.Strengthening Group Management
Review and shore up Chinese customs of ‘High Stocking Rates’ and ‘Generous Staffing’ to Japanese standards/levels, and strengthen our EC site to be video compatible – in line with 5G development which is progressing faster than in Japan
With these two initiatives, we will be able to promote higher
profit margins
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Slide 21
■As part of the continuous growth of the Chinese apparel business, we will further accelerate strengthening EC
and expanding stores.
CHINA
JAPAN
Sharing the
know-how of EC sales
Continuous
Expansion of Stores
Accelerating the
strength of EC
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, 3-2 Stead Growth of ChinaApparel Business (3/3)
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Slide 22
■Building upon Baroque’s ‘Strengths’, develop new businesses that meet the requirement of contributing to the realization of a sustainable society
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, 3-3. New Business Creation
① Baroque’s Strength = Sales Power
Ability to build customer relationships
Based on this sales power~the ability to create sales in an
unsuccessful environment
② Baroque’s Strength = China Expansion Capabilities
Expansion capability seen in achieving over 300 stores in ChinaFamiliarity with customers/market~Developed strength in China apparel
business
Sustainability
Practices
StoresApparel
Customers
Regeneration/Greening Business
Waste/Incineration
Return to
Nature
Recycled into Raw Material
New Business/New
content~ Use of Recycled Raw Materials~ Content that does not generate waste or residual inventory
Current
Apparel
Business
Create and leverage the
strengths of new sustainable businesses
Sale/
Purchase
Keeping up with changing times
Launching new brands
Food
Clothing
Living Environment
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Slide 23
■We hope to set three goals towards our role in the Environment, Society, and towards People, and link them to specific initiatives
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, 3-4. Sustainability Initiatives (1/2)
Society
Providing
“Opportunities” to
contribute to
sustainability
People
An energetic workplace, a
company where people take
on challenges
Environment
Things Baroque can
do to protect the
Global Environment
SDGsとの関連
Manufacturing Curtailment
Efficient use/reuse of
resources
From ‘Disposable’ to
‘Non-Disposable’
Proposing ‘Ethical’ as
a Style
Easy-to-work-with, Easy-to-
Challenge Workplace
En
viro
nm
en
tS
ocie
tyPeop
le
Sustainability Goals Issues to Address
Strive to achieve zero waste
and zero incineration
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Slide 24
■By approaching our impact on Environment, Society, and People, we endeavor to work on sustainability.
Field Initiative Themes ContentsRelated
SDGs
En
viro
nm
en
t
Overproduction Curtailment
Overproduction Curtailment・Reduction of amount of items, sub-item SKU・Realized Quantity Control through QR
Efficient Use/Re-use of Resources
Active Use of Environmentally Friendly Material
・Use of recycled/environmentally-friendly materials・Use of Environmentally-Certified Materials across Manu.
Environmentally-Friendly Production
・Product Processing at Wastewater Recycling Plants・Ozone Wash Processing(Reduction of Water Consumption)
Use of Recycled Materials for Accessories
・Use of Recycled Paper for Tags/Bags・Use of Recycled Materials for Woven Tags
Re-use of Store Interior Design・Opening Store: Effective Use of Previous Tenant’s Features・Closing Store: Leaving when the above is possible
Reduction/Elimination of Plastic Materials
・Abolition of Plastic Shoppers (Store Bags)
Socie
ty
‘Disposable’ to ‘Non-Disposable’
Coordination and Sale of DeadstockProposals/Sale of Remade Products
・Deployment of AUNE EC Site・Creation and sale of remade products across other brands
Utilizing Recycled Fiber in a New Way
・Development of a business that utilizes recycled soil
Ethical as a StyleBusiness Development of the ‘M_’ Brand, Etc.
・Development of a Brand that through focus on materials and processes is ‘Ethical to wear and use’
Peop
le
Creating a Comfortable Workplace・Personnel System Reform(Training, Treatment,
And Evaluation・Improvement of Remote Work Environment
Ⅲ.Basic Policies of the Next Medium-Term Management Plan
3.Key Strategies for the Next Medium-Term Management Plan, 3-4. Sustainability Initiatives (2/2)
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Slide 25
Ⅲ. Basic Policies of the Next Medium-Term Management Plan
3. Key Strategies for the Next Medium-Term Management Plan, 3-5 Development of Infrastructure to Support Business
① Promotion of Scrap-and-Build Store Dev. Strategy
③ Supply Chain Updates
④ Strengthening Training and Placement Through Personnel System Reform
To act as customer contact points, maintain a certain number of real stores
In the future, without increasing the total number, shift to a stronger structure through relocation, etc.
Further cost reduction through promotion of direct trade with China
Establishment of a system or mechanism for achieving both cost reduction and improved QR system
Emphasize Employee Development, and enhance ability to respond to change
“Achieving Optimal Placement” by adopting “Job-Based Pay
Developing career by ensuring flexibility in transfers
■To strengthen the foundation that supports our business operations, we will work on the following 4 initiatives
② Aggressive Investment as Preparation for Growth
Even in a difficult market environment, to act as the basis for the next stage of growth aggressively make investments
Specifically, during this period of the Medium-Term Management Plan, we expect to pursue various efforts and investments towards the realization of new retail, establishment of new marketing capabilities, operation of a new EC system, office renewal, renewal of core systems, and investment in new business test marketing, etc.
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Slide 26
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Slide 27
Ⅳ.KGIs for the Next Medium-term Management Plan
1.Management Indicators and Goals (1/2)
At this stage of the medium-term management plan, financial outlooks remain uncertain in the immediate present (1 to 2 years),
including the impact of the coronavirus epidemic on the market.
As such, during this stage, in order to prioritize strengthening our base ability to steadily generate profit and also to prepare for
future expansion, we will promote an agenda to achieve the following index targets.
Management
IndicatorsFY2024/02 Target Approach
Operating
Profit Margin7.5~8.0%
Key Indicator of Profitability Across Our Consolidated
Group
✓ Improvement of our Profit Margin will also help realize improvements
to Total Profit Amount
Inventory
Turnover
5.5~6.0
Turnovers
Key Indicator to Measure Change and Evolution of our
Business Structure
✓ Indicator to measure both improvement of our profit margin and
manufacturing without overproduction
✓ Verifies actualized efficiency and precision across MD
■During this medium-term management plan, the following goals have been set for the subsequent indicators.
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Slide 28
Ⅳ.KGIs for the Next Medium-term Management Plan
1.Management Indicators and Goals (2/2)
Management
IndicatorsFY2024/02 Target Approach
Overseas
Growth Index
① 20 Stores/Yr
② Launch in 30
Countries
Key Indicator of Growth across our Overseas
Apparel Business
✓ First, we aim to achieve steady and continuous growth in
China (Indicator 1)
✓ Then we will expand the number of countries we have
launched in to 30 (Indicator 2)
ROE 13~15%
Key Indicator of Profit Generation based on Capital
✓ Illustrates achieving a profitable structure and meeting the
expectations of stakeholders
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Slide 29
Ⅳ.KGIs for the Next Medium-term Management Plan
2.Dividend Policy
We will continue to aim for stable and continuous dividends.
In the present Medium-Term Management Plan, the current target is 38 yen per
share, per year.
This coming Medium-Term Management Plan is a period of transformation for
our profit structure, in which we will continue to aim for stable shareholder
returns by targeting a specific “amount” of dividends.
Realization of Stable &
Continuous Dividends
■Dividend Policy will continue as followed.
Div
idend
JPY/Y
r
Div
idend P
ayout R
atio
10.0
38.0 38.0 38.0
32.0
10.1
110.8%47.0% 47.6%
306.4%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
350.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
FY2017/01 FY2018/01 FY2019/02 FY2020/02 FY2021/02
Dividend Payment・Dividend Payout Ratio
Dividend
Per Share
Dividend
Payment
Ratio
COPYRIGHT © 2021 BAROQUE JAPAN LIMITED. ALL RIGHTS RESERVED.
Slide 30Disclaimer Regarding Future Prospects
■ This document refers to the industry trends and business contents related to Baroque Japan Limited,
and the future prospects based on the current plans, estimates, prospects, or forecasts by Baroque
Japan Limited
■Inherent to these forward-looking statements are various risks and uncertainties. Risks, uncertainties,
and other factors either already known or yet unknown may cause results that differ from what is
contained in said forward-looking statements
■ The actual future business content and business results of Baroque Japan Limited Co., Ltd. may differ
from the future outlooks described in this document
■The statements regarding the future prospects in this material are made by Baroque Japan Limited
based on currently available information; even if there is new information, future events, etc. going
forward, we undertake no obligation to update or change any statement regarding future prospects
contained within this material.